The fight for clean tech: EU clashes with US and China

The fight for clean tech: EU clashes with US and China

The European Union has introduced its Net Zero Industry Act and is fighting to protect green energy companies.

Why is this important?

The entire world is fully engaged in the green transition. The EU in particular wants to position itself as a pioneer. Many of the key companies and industries necessary for that transition are located in Europe, but China and the United States are lurking. Last year, the US introduced deflationary legislation and splashed out subsidies to attract green energy companies. So the EU is now coming up with an answer.

In the message: The deal is a key part of the European Green Deal, which aims to make the EU a carbon-neutral continent by 2050.

  • The European Commission is proposing to loosen state aid rules to keep companies in the EU. Policymakers are aiming for 40 percent of all clean technologies needed by the business community to be produced in Europe. Hence the message Politics.
    • Various targets have been set for the technologies needed to make the European economy carbon neutral.
  • “We need to increase the production of clean technologies,” said European Commission Vice President Frans Timmermans. So the EU plays the territorial card and does not want to depend on third parties to achieve climate goals.
    • Nuclear power is not included in the text as a ‘strategic zero emission technology’. There was a long debate about this internally. However, zero-emission technologies are referred to as ‘advanced technologies for producing energy through nuclear processes with minimal waste’ and ‘small modular reactors’.
    • Other strategic technologies that can count on additional support from the EU are solar and wind energy, batteries, heat pumps, geothermal energy, electrolysis, biomethane and carbon capture and storage.
  • In addition, the European Commission also introduced the Complex Raw Materials Act. Through this, the trade group wants to strengthen and ensure availability of rare minerals and metals needed for green transition.
  • Finally, there was a plan for a European Hydrogen Bank to focus on renewable hydrogen production and import.
See also  Top US sanctions official warns Austria about Russia - March 6, 2024 4:58 pm

War between China and America

Notable: The EU is known as an economic giant and is trying to keep it that way.

  • The Net Zero Abatement Act comes in response to massive green subsidies that Washington began handing out to green industries last year.
  • Imports of Chinese green technology are also restricted. According to the Asian superpower Financial Times Some parts are responsible for more than 90 percent of solar panels.
    • Beijing’s dominance continues to grow in other supply chains, such as wind turbines and electric vehicles.
    • In sectors where the EU is currently a global leader, the European Commission wants to maintain that position.
    • Last fall, wind turbine manufacturer Siemens made a maximum call for imported wind turbines, as China continues to increase its share of that market.
  • European policymakers want to prevent the EU from making the same mistake with China over clean technology after being so dependent on Russia for gas for so long.


Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top